A LevelEconomicsAQAExam QuestionsIndividuals, Firms, Markets & Market Failure7. Income & Wealth Distribution

Income & Wealth Distribution (AQA A Level Economics): Exam Questions

Exam code: 7136

1 hour10 questions

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7. Income & Wealth Distribution

1
Sme Calculator15 marks

Explain how the Lorenz curve and Gini coefficient may be used to illustrate increasing income inequality in a country

Case Study

The Resolution Foundation estimates that 1% of adults, about 488 000 people, own 14% of the UK’s assets – worth about £11 trillion. At the other end of the scale, 15% of adults, about 7.3 million people, either own no assets at all, or are in debt. Meanwhile, income is also unequally distributed, but not to the same extent as wealth

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2
Sme Calculator25 marks

Evaluate the view that government intervention to reduce inequality will lead to an improvement in economic welfare

Case Study

The economist Greg Mankiw has written that ‘society faces a trade-off between efficiency and equity. Efficiency means that society is getting the maximum benefits from its scarce resources. Equity means that those benefits are distributed fairly among society’s members. Often, when government policies are designed, these two goals conflict.’

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3
Sme Calculator25 marks

Assess the view that, in the UK, the consequences of wealth inequality are more damaging than the consequences of income inequality

Case Study

The Resolution Foundation estimates that 1% of adults, about 488 000 people, own 14% of the UK’s assets – worth about £11 trillion. At the other end of the scale, 15% of adults, about 7.3 million people, either own no assets at all, or are in debt. Meanwhile, income is also unequally distributed, but not to the same extent as wealth

How did you do?